Bullion Glossary

The definitions in this section will help you better understand the retail bullion industry as you explore the precious metal products that fit your investment goals.


A method of storing precious metals where specific bars, coins, or ingots are assigned to individual investors and kept separate from other holdings in a secure vault.

When you invest in precious metals through TD Secure Storage, your bullion products will be stored in an allocated storage vault.

Ask Price

The price a seller is willing to accept for an investment such as precious metals.


Rectangular-shaped pieces of high-purity precious metals such as gold, silver and platinum, which serve as an investment and store of value.

They typically range in weight from a fraction of one troy ounce up to 1000 ounces for silver bars. The purity of bullion bars typically ranges from 99.9% to 99.99%.

Bullion bars do not have any legal tender face value. Their value is primarily based on their metal content and weight.

Smaller bullion bars are typically produced by minting or stamping sheets of bullion, while larger are cast using molds.

Bid-Ask Spread

The difference between the bid price and the ask price of a commodity such as gold, silver, or platinum.

Bid Price

The price a buyer is willing to pay for an investment such as precious metals.


High-purity physical precious metals like gold and silver typically formed into bars, coins, ingots and rounds which serve as an investment and store of value. Bullion products are required to meet a minimum purity standard of 99.5% to be considered investment-grade.

Bullion Dealer

A company that buys and sells precious metals, such as gold, silver, platinum, and palladium, in the form of coins, bars, or other bullion products.

TD is not only a trusted bullion dealer but also a key global financial institution in the precious metals industry as one of the few LMBA market makers.


Coins minted from high-purity investment-grade precious metals such as gold, silver and platinum.

They typically range in weight from a fraction of one troy ounce to a few ounces, like these 5 oz. Silver Coins. The purity of bullion coins typically ranges from 99.9% to 99.99%. This is why bullion coins are valued primarily for their metal content rather than their face value.

For example, you will notice that the face value of the 1 oz. Gold Maple Leaf Coin (2023) is $50. However, the cost to purchase this coin is much higher because it contains 1 ounce of high-purity gold.


A financial institution or other third party responsible for the safekeeping and management of assets, such as precious metals held in allocated or unallocated storage.


Fabrication Fee

The cost associated with the production, minting, and distribution of bullion products.

The nominal or dollar value of a coin as determined by the issuing authority, which is often much lower than the coin's market value.


Represents the purity of precious metals, expressed in parts per thousand or as a percentage. For example, the 1 oz. Gold Maple Leaf Coin (2023) has a purity level of 99.99% or fineness of 999.9. This means for every 1000 parts of metal in the coin, 999.9 are pure gold, and only 0.1 is a different alloy.

Fractional Coin

A bullion coin with a smaller weight and lower face value than a standard 1-ounce coin, often used as a more affordable option for investors or collectors.


Gold-to-Silver Ratio

The ratio between the prices of gold and silver, often used as an indicator to determine the relative value of the two metals.

Good Delivery

A trusted, high-quality standard for gold and silver bars established by the London Bullion Market Association (LBMA). The LBMA maintains a list of accredited refiners for both gold and silver markets.



Official stamp or mark struck on a precious metal item that indicates its precious metal content (purity), weight, and the mint where it was refined.


Large bullion bars that are cast by pouring molten precious metal into a mould. Ingots are usually rectangular in shape and are used as a convenient form for transporting and storing precious metals.


LBMA (London Bullion Market Association)

An international trade association that facilitates the trading, regulation, and promotion of the wholesale over-the-counter market for gold and silver bullion.

Bank notes or coins that a government recognizes as valid for payment of debts and obligations. Legal tender are most commonly issued by a government of a country.

In Canada, bank notes are issued by the Bank of Canada and coins by the Royal Canadian Mint. Both are crown corporations.

London Fix

Global daily benchmark price for a basket of precious metals published twice daily by the London Bullion Market Association (LBMA). The price is agreed upon by a number of large market makers and financial institutions to offer a consistent and fair price for gold, silver, platinum, and palladium.


Melt Value

Represents the value of a precious metal item based on its purity, weight and the current market price of the metal. For example, the melt value of 10 oz. silver bars can be calculated by multiplying the purity (use 0.999 for bars that are 99.9% pure) by the weight (10 troy ounces) and current spot price per ounce.

Minted Bar

A type of bullion bar produced by cutting and stamping a specific weight and design from a sheet of precious metal, resulting in a polished, uniform finish.


Physical Delivery

The process of transferring the actual possession of precious metals, such as gold or silver, from a seller to a buyer.

Precious Metals

Rare and valuable metals with great value, such as gold, silver, and platinum.



A company that processes raw precious metals, by separating and purifying them (i.e. gold or silver) from other metals to produce high-purity bullion products.

Precious metal products that are similar in appearance to bullion coins but do not contain any face value and are not considered legal tender.

Bullion rounds are valued for their precious metal content and purity. They are usually produced by private refineries instead of a government mint.


Spot Price

The current market price at which a commodity, like gold, silver or platinum, can be bought or sold for immediate delivery.


A unit of measure used for precious metals that equates to 31.1035  grams or 1.09711 avoirdupois (standard) ounces. One troy ounce is a common standard of measurement for precious metals.



A method of storing precious metals where investors hold a claim to a specific quantity of metal, but not to specific bars, coins, or ingots, which may be held in a pooled account with other investors' holdings.

TD Secure Storage uses Allocated Storage to store your precious metal investments.


A secure storage facility for precious metals, often used by investors, dealers, and financial institutions to store their bullion holdings.

When you invest in precious metals through, your bullion products will be stored in an allocated storage vault.


World Gold Council (WGC)

A market development organization for the gold industry, which aims to stimulate and sustain demand for gold, provide industry leadership, and promote responsible mining practices.